Mainland Chinese investors should use authorized cross-border channels rather than overseas brokers or personal foreign-exchange allowances
The source's May 2026 Chinese rules prohibit overseas firms such as Tiger, Futu and Longbridge from opening accounts through illegal mainland business. Existing accounts are limited to selling and withdrawing through a two-year rectification period. Personal foreign-exchange allowances cannot fund overseas securities purchases; violations can remove allowance access for the current year and the next two. Use authorized routes such as QDII funds or Stock Connect where eligible.
What it takes
No additional fee for the access step; QDII funds can be found in a domestic bank or brokerage app within minutes. Available products are more limited than through an overseas broker.
What you may gain
On May 22, 2026, eight Chinese agencies—the CSRC, MIIT, Ministry of Public Security, PBOC, SAMR, financial regulator, cyberspace authority and SAFE—issued a two-year plan to eliminate illegal cross-border securities, futures and fund operations. Overseas institutions may not solicit mainland business or illegally provide account opening, order processing or fund transfers. For existing mainland investors, the plan prohibits illegal purchase and inward-funding services and allows only sales and outward transfers; mainland websites, trading software and supporting servers are to be shut after the two-year period. The CSRC simultaneously announced proposed confiscation of illegal gains and severe penalties for relevant Tiger, Futu and Longbridge entities. Its Q&A directs investors to Stock Connect, qualified domestic institutional investor (QDII) products and Cross-boundary Wealth Management Connect. SAFE's personal foreign-exchange application prohibits use for unopened capital-account purposes such as overseas property, securities, life insurance and investment-type return/dividend insurance. Violators enter a watch list, lose the convenience allowance for the current year and two subsequent years, and may face administrative penalties, anti-money-laundering investigation referral and credit-record reporting.
Context & considerations
The cross-border-business documents regulate overseas institutions and do not state penalties for investors themselves. The source advises existing account holders to sell and bring funds back within the two-year period. Authorized routes have different eligibility requirements; ask your domestic bank or broker. Past US equity gains do not promise future gains. For QDII, apply the source's broad-market and diversification principles rather than concentrating in one market. Overseas cash withdrawals have separate limits; see Chapter 21, entry 6. This is not investment advice.
Research & references
China Securities Regulatory Commission (May 22, 2026). Eight-agency plan on illegal cross-border securities, futures and fund operations. https://www.csrc.gov.cn/csrc/c100028/c7634324/content.shtml ; CSRC (May 22, 2026). Q&A on that plan. https://www.csrc.gov.cn/csrc/c100028/c7634328/content.shtml ; CSRC (May 22, 2026). Enforcement against Tiger and other institutions. https://www.csrc.gov.cn/csrc/c100028/c7634330/content.shtml ; State Administration of Foreign Exchange (2021). Personal Foreign Exchange Purchase Application, attachment 1. https://www.safe.gov.cn/safe/file/file/20210402/30fab7a9646f417ca9d2f67ff4c1e5f0.pdf